With investor appetite for newly-built offices remaining competitive there is also a continuous demand coming from investors seeking older, yet sustainably rentable offices with high occupancy – these refurbished offices remain attractive for the active funds in Budapest. This time CBRE has transacted Bluehouse Capital’s Margit Palace sale to Adventum TRIUM Real Estate Fund.
Margit Palace is a Class A office building in the Central Buda office submarket. The building is 96% occupied and benefits from an eclectic tenant mix, that occupies nearly 18,000 sqm of office, retail & storage space in three partly interlinked buildings. By September 2017 a comprehensive refurbishment was carried out at Margit Palace that has repositioned the property as a prime asset from both an investment and leasing perspective.
“While newly-built offices remain popular with investors, one should not underestimate the need of those investors who are looking for established properties with a proven track record. Investors are able to underwrite the asset based on the past performance and the predicted growth which is based on its track record and ability to perform in all parts of the market cycle,” Tim O’Sullivan MRICS, Head of Capital Markets at CBRE Hungary said.
“The timely sale of Margit Palace confirmed the improved liquidity in the Hungarian market, which provides confidence to our investors for subsequent investments”, Stevan Lojovic Country Manager for Hungary at Bluehouse Capital noted.
‘We are delighted to be the new owners of Margit Palace. We do think that we ended up with a good deal and our investors are satisfied with the price we achieved. We will continue our efforts to buy attractive and reliable assets in Hungary,” Gergely Koó MRICS, Leasing Director at Adventum Investment Fund Management added.